Cash Rebate Research Articles

Decision Making by Trade-In Programs in the E-Commerce Supply Chain, Considering Cash Rebate Strategies and Platform Services

As the consumer market becomes more saturated, the e-commerce supply chain (E-SC) has introduced the trade-in program in an attempt to drive consumption. This paper considers the strategy of the E-SC to provide cash rebates for consumers participating in the trade-in program and incorporates the e-commerce platform’s trade-in service efforts into the E-SC’s decision-making system. Depending on who provides the cash rebate, we construct four decision-making models of the E-SC, i.e., the no-cash-rebate model, the manufacturer model, the platform model, and the cooperative model, where both the manufacturer and the platform jointly provide the cash rebate. We show that the platform model reduces the trade-in service level, but the manufacturer model increases the trade-in service level. In addition, since the cash rebate increases operation costs, the sale price of products is inevitably improved. Furthermore, the platform model raises product demand, but the manufacturer model lowers product demand. The cooperative model proves effective in enhancing demand only when the manufacturer contributes a minor share of the cash rebate and the trade-in service is less efficient. Cash rebates can increase the E-SC’s profits, but the degree of this increase becomes smaller as the cash rebates increase. The manufacturer and the platform always want to exploit each other’s cash rebate strategies. Consumer surplus and social welfare are highest in the platform model and lowest in the manufacturer model. Taking into account the profits, consumer surplus, and social welfare, the platform model is the most conducive to E-SC system operations.

Export Fraud in India

AbstractWe investigate tax fraud in a major export-promotion program in India – the Duty Drawback scheme – which enables exporting firms to claim a cash rebate proportional to the value of their exports, at a product-specific drawback rate. We detect fraud based on two approaches. First, we show that bilateral trade asymmetries between reported exports by India and reported imports by trading partners of the same trade flows are systematically correlated with the rate of drawback, suggesting that exporting firms over-report exports to unduly gain duty drawback. Second, we find evidence of excess bunching in the distribution of unit values reported by India at kinks in the per-unit drawback schedule, relative to the distribution of unit values reported by importing countries. Our results suggest that fraud currently detected by customs represents only 3.8%–6% of actual fraud.

Caught in the war against gambling: A critical analysis of law history and policy making in video games in Greece

The advent of the video game industry brought about new cultural policies in both the national and international levels. In particular, incentives and flexible funding programmes for the production of video games have become a key pillar of support for small, domestic, but also global game companies. In Greece, video game policy history has followed the developments and legal entanglements of gambling regulation, with serious national and international consequences. From the Royal Decree of 1971 to Law 3037/2002 that banned all games in public and private places until the most recent Law 4487/2017, which established a cash rebate scheme for audio-visual productions, this article aims to analyse Greece’s video game policy-making as captured through scattered laws, media articles and personal testimonies.

POTONGAN HARGA, DISTRIBUSI FISIK DAN PROMOSI PENJUALAN TERHADAP PENJUALAN

Selamat Lestari Mandiri is a company engaged in the sale of motor vehicles and automobiles. Car with brand Toyota and motorcycle brand Honda. The problems faced were experiencing a decline in sales from September to November 2011. The problem is allegedly caused by the price cut in the form of a cash rebate given by PT. Selamat Lestari Mandiri is considered to be too low, physical distribution channel of the purchase or follows i.e. the number of products sent the main dealer does not correspond to the number of purchase requests submitted by PT Selamat Lestari Mandiri. Another cause of sales promotion of the promotion of salespeople in the monotonous sale contest, there is no change in its promotion.The purpose of this research is to know the implementation of discounted prices, the implementation of physical distribution, the implementation of sales promotions, sales execution and to know the magnitude of the influence of price cuts, physical distribution and sales promotion On the sale of Honda's motor products PT Selamat Lestari Mandiri Sukabumi. The research methods used are descriptive research methods and associative research methods. The technical collection of data is done by observation, interviews, questionnaire dissemination, literature study, and documents given by the company.Based on data obtained from the analysis results indicates that the correlation analysis of product-moment is generated By 0.665 means that all three influences are strong in influencing the sale, the coefficient of determination 42.2% and 57.8% are caused by other variables not examined in this study. The result of calculating the F hypothesis test count is greater than the F table (10.847 > 2.833.) so that H0 is rejected and H1 is received. That is, there is a significant influence between rebate, physical distribution, and sales promotion to sales.

A Transparent, Numerical Solution to the Joint Estimation of Imputation Credit Value and Cash Dividend Value

Multiple regression analysis leads to coefficient estimates that need to be jointly interpreted. This holds even if correlation amongst independent variables is at a level that researchers typically consider to be tolerable. In estimating the value of imputation credits using multiple regression, experts and regulators have typically considered estimates of the value of imputation credits in isolation. They apply the credit value estimates to pricing models under the assumption that cash is fully valued by the market. We call this problem selective interpretation. We address the challenge of selective interpretation by conducting an advanced “if-then” analysis. We ask if cash and credits are truly valued by investors at x and y, then what range of regression coefficients would occur if the regression could be repeated over and over again? This allows us to estimate confidence intervals for the value of cash dividends and imputation credits by making transparent assumptions about the independence of observations and the non-constant variance of error terms. Our paper has application to any research that relies on multiple regression analysis. The practical implication is that in the current tax regime, under which investors can receive a cash rebate for imputation credits, the market value of imputation credits lies within the range of 0.01 to 0.15. A dollar of cash is valued by the market at somewhere between 87 cents and 92 cents. But, at the lower end of the cash value (0.87), credits are worth between 0.13 and 0.15, and, at the higher end of cash value (0.92), credits are worth between 0.01 and 0.10. The value of imputation credits has moved over time in a direction consistent with the changing tax treatment. Prior to the introduction of the 45-day rule, credits had an estimated value within the range of 0.07 to 0.24, but the value decreased to a range of just 0.00 to 0.02 once the 45-day rule was introduced. Upon the introduction of the cash rebate, the value of credits has increased to a range of 0.01 to 0.15.

Sports betting incentives encourage gamblers to select the long odds: An experimental investigation using monetary rewards.

Background and aimsIncentives for wagering products can provide extra value to gamblers. However, there is no financial reason why this added value should lead people to take greater gambling risks. This study aimed to experimentally test if wagering incentives cause gamblers to choose higher-risk (long odds) bets than un-incentivized bets.MethodsAn online experiment was conducted with wagering customers (N = 299, female = 12). Participants bet $4 on each of six video game simulations of a sport that they had wagered on in the past 12 months (Australian Football League, Cricket, or Soccer). Each game offered different common wagering incentives: Bonus bet, Better odds/winnings, Reduced risk, Cash rebate, Player’s choice of inducement, or No-inducement. For each game, participants could bet on long, medium, or short odds, and subsequently viewed a highlight reel of the simulated game outcome and bet outcome.ResultsParticipants selected significantly longer odds (i.e., riskier) bets on games when an incentive was offered compared to the No-inducement condition. Better odds/winnings was the most attractive incentive, followed by Bonus bet, Cash rebate, Reduced risk, and No-incentive, respectively. No significant differences were observed based on demographics or problem gambling severity.Discussion and conclusionsThe choice of long odds with incentivized bets increases the volatility of player returns. Increased volatility results in more gamblers in a losing position and fewer gamblers with larger wins. Moreover, if long odds bets are priced to provide poorer value to bettors compared to short odds, they would increase gamblers’ losses and equivalently increase operators’ profits.

Economic Success in East Asia and in Hong Kong

This study is concerned with the organizational characteristics of Hong Kong’s manufacturing firms, the business and technology strategies they adopt. Before turning to those issues, it is useful to set the study in its broad setting, which is East Asian economic development. The purpose of this paper is to set out that broad setting, focusing on the explanations put forward for Hong Kong and East Asia’s economic success. Particular attention is paid to the role of technology in economic development, to the technology policies adopted by governments and to the means by which East Asian firms have developed their technological capabilities. The paper also shows that Hong Kong Special Administrative Government (HKSAR) has taken a different route to development than other East Asian economies, which may have implications for its great change in policies to support R&D through the Research and Development Cash Rebate Scheme. Under the scheme, a company will receive a cash rebate equivalent to 40% of its expenditure in R&D Projects.

A mixed integer nonlinear model for closed-loop supply chains with incentive and proximity based product returns

Electronics firms in different locations are being required to collect used products due to environmental and health hazards. In order to meet environmental requirements, firms carry out collection activities and provide incentive offers to attract product returns. A mixed integer non-linear programming model for a Closed-Loop Supply Chain including decisions for collection activities, incentive offers and recovery options is formulated and validated. Quantity is modeled as a function of incentive offers and distance between the collection centers (distribution/retail centers) and consumers. The quality of product returns follows an arbitrary probability distribution, which is shifted by incentive level. Quality of product returns dictates the possible recovery options, which these can undergo. The model is subjected to scenario analysis. This is comprised of conditions wherein rebate, or discount incentives is preferred and when low or high incentive levels are favored. High stockout cost to secondary consumers encouraged the model to perform more cash rebate activities to stimulate more product returns to satisfy secondary consumer demand. In another situation, high cost of activities while having high stockout cost to secondary consumers induced the model to carryout discount activities as this would generate sales rather than the cash rebate which simply incentivizes the participation in the takeback program.

Dividend drop-off estimates of the value of dividend imputation tax credits

The value of dividend imputation tax credits is the product of two components: the proportion of credits that are distributed to shareholders and the market value of those distributed credits. We employ a large sample and improved econometric techniques to estimate the value of both cash dividends and distributed imputation credits using dividend drop-off analysis. Our sample period begins in July 2000 to coincide with an important amendment to the dividend imputation legislation that allows residents to claim a cash rebate for excess credits, ends in June 2016, and covers 4690 ex-dividend events. Our results indicate that the market values distributed imputation credits at approximately 35% of the face amount.

The Market Value of Dividend Imputation Credits Implied by Futures Prices

A limitation of prior research on imputation credit value is researchers’ selective interpretation of the regression coefficient used to estimate credit value. This ignores the in-sample evidence on the value of cash dividends and the value of a fully-franked dividend. This is a problem because a sample of security prices, unfranked dividends and franked dividends necessarily leads to the simultaneous estimation of the value of a cash dividend and an imputation credit. We measure the value of imputation credits under three tax regimes, accounting for the joint estimation of the value of cash and credits. The practical implication is that in the cash rebate regime, the market value of imputation credits lies within the range of -0.12 to 0.17. A dollar of cash is valued by the market at somewhere between 88 cents and 98 cents. At the lower end of the cash value (0.88), credits are worth between 0.04 and 0.17; and at the higher end of cash value (0.98), credits are worth between -0.12. and 0.00. The value of imputation credits has, in our view, moved over time in a direction consistent with changing tax treatment. But it is plausible that the value of imputation credits has remained within the range of -0.04 to 0.06 across all three tax regimes.

Optimal planning of incentive-based quality in closed-loop supply chains

Electronic firms are being required to collect used products for environmental purposes. In order to meet requirements, these firms carry out collection activities and provide incentive offers to attract product returns. These product returns may then undergo recovery options such as refurbishing, remanufacturing, cannibalizing, and controlled disposal. A mixed integer nonlinear programming model for a closed-loop supply chain that includes decisions for collection activities, incentive offers, and recovery options is formulated and validated. Quantity is modeled as a function of incentive offers between the collection centers and consumers, while quality of product returns follows an arbitrary probability distribution based on the incentive level. Quality of product returns dictates the possible recovery options, which these products can undergo. The model is then subjected to scenario analysis, which identified conditions wherein rebate or discount incentives are preferred, and when low or high incentive levels are favored. High stockout costs to secondary consumers encouraged the model to perform more cash rebate activities to stimulate more product returns. Meanwhile, when both the costs of activities and stockouts are high, the model is induced to carry out discount activities as this would generate sales rather than the cash rebate which simply incentivizes the participation in the take-back program.

Moral Incentives in Credit Card Debt Repayment: Evidence from a Field Experiment

We study the role of morality in the decision to repay debts. Using a field experiment with a large Islamic bank in Indonesia, we find that moral appeals strongly increase credit card repayments. In our setting, all of the bank’s late-paying credit card customers receive a basic reminder to repay their debt one day after they miss the payment due date. In addition, two days before the end of a ten-day grace period, clients in a treatment group also receive a text message that quotes an Islamic religious text stating that “non-repayment of debts by someone who is able to repay is an injustice.” This message increases the share of customers meeting their minimum payments by nearly 20%. By contrast, sending either a simple reminder or an Islamic quote that is unrelated to debt repayment has no effect on the share of customers making the minimum payment. Clients also respond more strongly to this moral appeal than to substantial financial incentives: receiving the religious message increases repayments by more than offering a cash rebate equivalent to 50% of the minimum repayment. Finally, we find that removing religious aspects from the quote does not change its effectiveness, suggesting that the moral appeal of the message does not necessarily rely on its religious connotation.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Supplier selection process in an integrated construction materials management model

Abstract The procurement and management of construction materials involve challenges related to reducing inventory, speeding delivery, and increasing the control of materials, thus decreasing the overall project cost. The objective of this research was to define and develop an integrated construction materials management (ICMM) model to address these challenges by deploying principles of virtual inventory management, feasible materials management networks, and a supplier selection process. Contributions include the development of the ICMM model and the demonstrated potential of the selection supplier process for improving procurement for construction projects. The use of the supplier selection process has been demonstrated through implementation on an industrial project and using the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method. This process optimizes and validates purchasing at each stage of fabrication for each construction package. A variety of project-specific criteria are involved in the supplier selection process, including price, lead-time, cash rebate, and supplier performance.

Antiemetic choice based on economic advantage.

9018 Background: Some advances in oncology have shown real but small benefits despite vast additional cost. Considering rising costs, strategies have been suggested to encourage patients to select cost effective therapies. The disincentive to choose costly care by using co-pays is often thwarted by Pharma funded co-pay assistance programs. We considered using a “carrot” instead of a “stick”; a cash rebate earned by choosing less costly care. We selected antiemetic therapy as our investigative model, as they do not require a choice that affects survival. Methods: Participants completed a survey that portrayed two antiemetic programs. Program A would have a 60% chance of completely eliminating nausea at a cost of $200 per cycle. Program B would have 80% efficacy with a cost of $800. If A was ineffective the patient could switch to B at any time. Both were described as covered by insurance; however, if program A was selected, the patient would receive half of the savings, a $300 rebate per cycle. Results: 162 patients were evaluated, half received prior chemotherapy. Most were female (79.5%) and had cancer (74.5%). More patients chose program A than program B (58.3% versus 41.6%). Neither having had cancer nor previous receipt of chemotherapy significantly affected program selection (p=1.0 and p=0.52, respectively). Within the cohort who had previously received chemotherapy, 63% of patients who had mild or no nausea chose program A compared to 38% of patients who had moderate to severe nausea (p=0.033). We were greatly surprised that 38% of patients who had trouble with prior nausea still chose the less effective program. If all patients received 6 cycles of program B, it would cost $777,600. By giving the patients a choice and reassigning the 40% of patients whose nausea was ineffectively controlled by program A to program B after one cycle, the cost dropped to $556,820. A $220,780 (28.4%) cost savings without access limitation, half going to the patients and half saved by the payers. Conclusions: We demonstrate that a model of shared cost savings utilizing incentives such as cash rebates can potentially decrease the high cost of some pharmaceuticals while maintaining free patient access. We intend to look further into this by investigating patient choice of expensive, low activity therapy.

An Observational Study of an Employer Intervention for Children's Healthy Weight Behaviors

This observational study was undertaken to assess whether changes in healthy weight behaviors could be advanced in a short-term intervention involving parents and children at IBM. IBM's Children's Health Rebate offered a cash incentive for parents to complete a 12-week program of self-selected activities in family food planning and meals, family physical activity, and sedentary time related to electronic entertainment ("screen time"). A preprogram/postprogram comparison of self-reported activities was used to assess behavior change. A total of 22,265 (52.3%) employees elected to participate, 11,631 (52.2%) of whom completed all program requirements and earned a $150 cash rebate. Families completing the program reported significant changes in levels of physical activity, amount of entertainment screen time, and proportion of healthy meals. For example, family physical activity >3 times per week increased by 17.1 percentage points (from 23.2% to 40.3%), eating healthy dinners ≥ 5 days/week increased by 11.8 percentage points (from 74.9% to 86.7%), and entertainment screen time <1 hour/day increased by 8.3 percentage points for children (from 22.4% to 30.7%) and by 6.1 percentage points for adults (from 18.1% to 24.2%). The results of this short-term observational study suggest that healthy weight behaviors in children, adolescents, and parents can be improved by using a Web-based intervention linked with a cash incentive. The results also show that employers can activate parents and support a role for employers in community-based strategies for obesity prevention in children. Experimental designs with biometric data would strengthen the suggestion of positive impact.

Effectiveness of an Incentive-Based Online Physical Activity Intervention on Employee Health Status

The objective of this study was to test whether a financial incentive integrated with health benefits for an online physical activity program was associated with increased employee participation and improved health status among participants compared with nonparticipants. Participation in the Virtual Fitness Center (VFC), an online physical activity program associated with a 150 dollars cash rebate, was assessed. Risk status for 2004 VFC participants and nonparticipants was compared using a health risk appraisal. A total of 53.8% of total eligible employees were VFC participants and reduced their risk for physical inactivity (8.4% points), life dissatisfaction (2.1), low perception of health (1.9), high risk status (1.3), smoking (0.4), and high body weight (0.2). Providing a cash incentive is one strategy for encouraging VFC participation and eliciting improved health status in an employer-sponsored, web-based physical activity program.

Enabling the Willing: Consumer Rebates for Durable Goods

For many consumers who use loans to acquire an expensive durable such as a car, the market value of their current (used) durable is less than the outstanding loan amount. If these consumers want to replace their used durable with a new one, they might not be able to do so because of the added burden of paying off the amount of negative equity. We develop and solve a model in which a durable goods manufacturer gives consumers a cash rebate, so that they can get out of the negative equity problem. We find that under certain conditions, the manufacturer offering a lower durability product is more likely to give cash rebates and, when such rebates are given, to offer a greater cash rebate. These rebates also lead to higher prices net of the rebate compared with the situation without any such rebates. We empirically test some of our equilibrium results and find support for our model predictions.

Option pricing model for cash rebate mortgages

This paper alters the traditional model of valuation by introducing trinomial trees, and determines the difference between the traditional plain‐vanilla, adjustable‐rate mortgages and cash rebate mortgages. By presenting an economic model for studying the combined effects of mortgage value by prepayment, delinquency, default, and cure speed, the model builds a simulation program to generate different cash flow scenarios. The results indicate that the value of cash rebate mortgages is higher than that of standard mortgages, although they are more sensitive to embedded options. If the probability of exercising an option is higher, then the value of cash rebate mortgages will drop at a faster rate than that of standard mortgages.

Analysis of American Discrete Barrier Option with Stochastic Rebate

Unlike standard barrier options that pay a fixed amount of cash rebate when they are knocked out, a new type of American-style covered warrants appeared in Taiwan that has the unique feature of stochastic cash rebate. Available pricing models are not directly applicable to options with this innovative rebate specification and it is not clear if and how stochastic rebate affects its pricing and hedging operation. This article develops a valuation model that specifically considers the discrete nature of barrier monitoring and analyzes the impact of stochastic rebate on the pricing and hedging of barrier options. Our findings suggest that both the value and hedge parameters of this type of warrants can differ significantly from that of their fixed-rebate counterparts and it is therefore critical for both investors and issuers to account for this stochastic-rebate specification correctly when dealing with this type of option contracts.

Measuring the Impact of Child Care Subsidies on the Incomes of Mothers Returning to Work

The cost of child care is one of the greatest financial barriers faced by mothers returning to work. In recognition of this cost, the federal government provides child care subsidies to assist families to meet the cost of child care.This paper models the use of child care services and the provision of child care subsidies to determine how effective the Australian government child care support programs are in reducing the financial barriers that make returning to work difficult for many mothers. Both childcare assistance and the newer childcare cash rebate are modelled. The impact of these assistance measures is examined for couples and sole parents on different incomes with one or two children in child care.It was found that child care subsidies are highly progressive and make a substantial contribution to vertical equity by offsetting child care costs related to employment. They also contribute to horizontal equity, by providing greater assistance in meeting child care costs for families with more than one child in care, in recognition of their greater need. Sole parents derived the greatest benefit from child care subsidies, particularly those on low incomes working full‐time and with two children in care.